Page 14 - PMD Financial Advisers_An introduction to investing

Shares
Shares (also known as equities or stocks) represent ownership of part of a company. Historically shares have provided the greatest returns of all the asset classes, with returns through the growth in share value or through dividends. However they also represent a greater risk than other asset classes.
market sectors:*
Materials
Amcor, James Hardie
Energy
Caltex, Woodside, Origin
Industrials
Telecommunications
Telstra, Vocus
Consumer discretionary
JB Hi-Fi, Coca-Cola Amatil
Resources (mining)
RIO Tinto, BHP
Utilities
APA Group, AGL
Financials
IOOF, Westpac, ANZ
Information technology
Carsales.com, Seek
Healthcare
Cochlear, CSL
Consumer staples
Woolworths, Metcash, Wesfarmers
Real estate
Mirvac, Lend Lease
* The companies listed in the table are only examples and shouldn’t be taken as advice
Ways to own shares
Generally there are two ways to invest in shares:
Direct ownership
Managed funds
You have total control to choose the company and the quantity of shares purchased. They are usually purchased through a stockbroker.
An investment manager pools the money of all the investors, then researches and buys and sells shares on your behalf.
In this case you own ‘units’ of the managed fund rather than the shares in the companies themselves. Managed funds
structure associated with the service.
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